Sanofi (SAN) Q4 2025 earnings summary

Executive summary

• Achieved 9.9% sales growth for FY 2025 to €43.6 billion, with Q4 sales up 13.3% to €11.3 billion and business EPS up 15% to €7.83.

• Major launches included ALTUVIIIO, Qfitlia, Wayrilz, and Nuvaxovid; robust pipeline progress with 12 phase 3 and 15 phase 2 readouts.

• Completed Opella divestment, redeploying €10.4 billion into strategic acquisitions such as Vicebio and pending Dynavax deal.

• Shareholder returns included €5 billion share buyback and proposed €4.12 dividend (+5%).

• Vaccines segment delivered €7.9 billion in sales, with influenza outperforming expectations and Beyfortus immunization programs in over 45 countries.

Financial highlights

• FY 2025 net sales reached €43.6 billion (+9.9% CER), Q4 sales €11.3 billion (+13.3% CER); business operating income €12.1 billion (+11.9% CER).

• Business EPS for FY 2025 was €7.83 (+15.0% CER); gross margin expanded by 1.8pp to 77.5%.

• Free cash flow reached €8.1 billion (18.5% of sales), with inventory reduced by nearly 30 days.

• Q4 business operating margin was 20.7% (+1.0pp); FY margin at 27.8% (+0.2pp).

• IFRS net income for FY 2025 was €7.8 billion (+40.5%).

Outlook and guidance

• 2026 guidance: high single-digit sales growth at CER, business EPS to grow slightly faster than sales.

• Vaccine sales expected to slightly decline in 2026; €200 million sales reduction from portfolio optimization.

• Currency impact expected to be -2% on sales and -3% on business EPS for 2026.

• €1 billion share buyback planned for 2026; free cash flow target of at least 20% of net sales in the medium term.

• Profitable growth anticipated to continue for at least five years.